The Murgg Woods is located to the west of the Coal Mine, and north of Fire Manor. The Murgg frequent the area, protected by a great gate, safe from humanity. It serves as a entrance to the Tower of the Great Tree, filled with many traps and Murgg poised to attack. A Teleport Arch rests at the centre of the woods, completing the collection of eight arches.

The dungeon consists of two forms; woods and caves. The caves provide passages to other parts of the woods, and teleport pads to the major puzzle of the area; a bridge broken by three stone blocks. Under each block is a path connected to two teleport pads, and two switches which will raise or lower certain blocks. The objective is to have all three blocks lowered at once, as Alundra can cross to the teleport pad leading to the exit.

Towards the beginning of the dungeon, Alundra is ambushed by three Murgg, who attempt to crush him under a large spiked ball. They fail and flee, but are later seen deeper in the dungeon, noting their fear of humans, and of Zazan's demands for them to stop Alundra. After sighting Alundra, the trope flees, with one dropping the Willow Bow as he does so.

Alundra continues on, until one Murgg activates a Stone Golem to confront him. Defeating this, Alundra has free reigh of the woods to open the path to the Tower of the Great Tree.